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2014 (8) TMI 139 - HC - VAT and Sales TaxDetermination of sale price - Inclusion of mandi fees payable by the purchaser to the market Committee and not the seller albeit accounted for through him under Rule 59 of the Rajasthan Agricultural Produce Marketing Rules, 1963 (hereinafter 'the 1963 Rules') promulgated under Rajasthan Agricultural Produce Marketing Act, 1962 - Held that:- Sub-rule (2) of Rule 59 of the 1963 Rules thus categorically states that market fees shall be paid by the purchaser. What follows is only a mode for collection of mandi fee. In my considered opinion the mode of collection of mandi fee cannot alter its very character and be considered as a levy on the seller. Mandi fee is to be paid by the purchaser under the Rules of 1963 to the Mandi Samiti for the infrastructure created by it for facilitating a transaction i.e. it is a charge independent of the privity of contract between the seller to the purchaser and not a part of the consideration paid to the seller by the buyer. The market fee charged by the Mandi Samiti is not a levy on the seller and thus cannot constitute statutory levy within the meaning of Section 2(36) of the RVAT Act, 2003 liable to be included in the sale price. Further in case of M/s. George Oakes (P.) Ltd. v. State of Madras [1961 (4) TMI 78 - SUPREME COURT OF INDIA] a Constitution bench of the Hon'ble Supreme Court has observed that where in law tax is on the buyer and the dealer a mere collecting agency, it would remain outside the sale price. - No Substantial question of law arises - Decided against Revenue.
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